Banking · Credit Documentation

Consider the following statements regarding banking and legal credit documentation: 1. For a Hindu Undivided Family (HUF), documents should be executed by the Karta, and it is prudent to obtain signatures of all adult Coparceners to prevent future disputes over 'Legal Necessity'. 2. A HUF cannot be a partner in a firm, but the Karta can represent the HUF as a partner. 3. 'Set-off' is a statutory right of the bank to combine two accounts of the same customer to recover a debt. 4. For loans against Life Insurance Policies, the bank must ensure the assignment is recorded by the Insurance Company under Section 38 of the Insurance Act. 5. Hypothecation of stocks requires periodic stock statements, allowing the bank to inspect or take possession upon default under the SARFAESI Act. 6. An English Mortgage involves an absolute transfer of property to the bank with a promise to re-transfer it upon repayment, which must be registered. 7. Legal Audit of documents is mandatory for credit exposures above 5 crore. Which of the following evaluations is correct?